11460 Tomahawk Creek Pkwy. Ste. 420 Leawood, KS

What Drives Our Asset Allocation

Asset Allocation is Defined By:

The Balance…

Analysis of the three inputs below determine the appropriately tailored balance. Balance is essential in navigating the investment environment where the only true constant is change.

…And the Bias

Ever-changing macroeconomic factors influence our biases and underscore the importance of alternating the emphasis of a portfolio’s power amongst three broad classes of assets. We constantly evaluate the vehicles within each asset class that support our biases as we strive to fulfill investment objectives and propel toward established goals without taking excessive risk.

Need for Income

need for income

Time Horizon

time horizon

Tolerance for Fluctuation

tolerance for fluctuation

Pie Chart

Equity Assets

(Stores of Optimism)

Domestic and International Common Stocks, Mutual Funds & ETFs

Fixed Income Assets

(Stores of Income)

Corporate, municipal and government bonds, both domestic and international, both individual and pooled securities

 Alternative Assets

(Stores of Value)

Negatively correlated
non-traditional asset classes

Projected Returns =
Corporate Earnings + Inflation + Dividends + Multiple Expansion / Contraction

Interest Rates – Low vs. High
Fed – Accommodative vs. Restrictive
Economy – Growth vs. Contraction
Spreads – Tight vs. Loose

Full Valuation of Traditional Asset Classes
Investor Sentiment
Geopolitical Instability